Global Education in Manufacturing: Basic Framework, Industrial Survey and Possible Implementation Asbjorn Rolstadas Slavko Dolinšek Many new challenges and opportunities have arisen for Slovenia since May 2004 when it became a full member of the eu. On the one hand we have some successful economic players who can definitely gain from new opportunities, on the other hand some structural changes still have to be accomplished. One of the most demanding tasks is related to higher education and in particular to harmonization of eu and global educational systems. The paper presents the results of the international framework for a Master degree curriculum in manufacturing strategy and an example of the integration of competence in technology and business. A good example of meeting Bologna goals is to establish a system of easily recognisable and comparable educational degrees and to accelerate the employment of eu citizens as well as the competitive-ness of the European higher educational system. Key Words: manufacturing, education, training, industrial organisation jel Classification: l60, i21, m53 Introduction A few years ago Ridderstrale and Nordström published their best-seller Funky Business (2000) where they said: With the introduction of the plantation we moved from the hunting and gathering society into the agricultural one, and, with the coming of electricity, we entered the industrial era. Some call our world the knowledge society and others the brain one. The only certain thing is that the critical skills and answers of tomorrow will not be those of today. The future cannot be predicted – it has to be created. Either you see things happen or you make them happen. Dr Asbjorn Rolstadas is a Professor at the Department of Production and Quality Engineering, Norwegian University of Science and Technology. Dr Slavko Dolinšek is an Associate Professor at the Faculty of Management Koper, University of Primorska, Slovenia. Managing Global Transitions 4 (3): 261–278 262 Asbjorn Rolstadas and Slavko Dolinšek A similar observation considering the recent development within the industry has been written by Moseng and Rolstadas (2002): The industry has over the last decade undergone a significant change. It is no longer home-based; it operates in a global market. Digital business has become a strategy to survive. The extended enterprise is being implemented. Parts are made where conditions are most favourable. Non-core activities are outsourced. These service companies then become part of the supply chain that also spans suppliers and distributors. They all comprise an international co-operative network to provide manufactured goods and support services for a world market just in time, at low prices and with quality surpassing customer’s expectations. And also (Rolstadas 2004): In order to meet the challenge of the future way of business operation for the manufacturing industry, a new type of curriculum in manufacturing strategy is needed. For this reason the ims project Global Education in Manufacturing (gem) has been launched. The main objective of gem is to develop a new curriculum covering both manufacturing technology and manufacturing business - a Master degree in Manufacturing Strategy. At the first gem information day within the annual professional conference of the former School of Management Koper, this new approach of education in manufacturing was presented (Dolinšek and Prodan 2003). Furthermore the tasks of smk as a Slovenian partner, the products, expected benefits, and the first experiences obtained in the gem project were discussed. However one of the main questions was whether it is possible that something developed within the gem approach can also be successfully applied to the development of the education curricula in Slovenia. In relation to such a question Dolinšek (2002) concluded that: The very first question to which we need to find an answer in relation to such global education activities should certainly be: is such a global education system suitable for the Slovenian specialties with respect to the recent form of the educational system (five years of engineering study and three years of further scientific Master’s degree study), and is this approach or Managing Global Transitions Global Education in Manufacturing 263 are these curricula also appropriate for the specific needs of the Slovenian manufacturing industry? Thinking about such a dilemma and about the necessary skills and knowledge of Slovenian engineers in relation to the gem approach Dolinšek (2003) also stated that: In respect of the other nas (Nearly Associated States) Slovenia has a relatively highly developed industry, which also largely contributes to the whole export from the country. To a large extent the main competitive advantage of this industry is based on professional skills and knowledge of engineers and the extensive investment of companies in the education of the work-force. We can establish that in that sense the needs for skills and knowledge of many Slovenian manufacturing companies are far ahead from what the academic institutions can provide. Therefore links and benefits, such as those provided through the gem project, can be an excellent support for Slovenian educational institutions on their way to becoming part of the global education system. On the basis of a response from the Slovenian industry (these tasks were completed within the gem project) we also published the results (Dolinšek and Prodan 2004) and concluded that: One of the most important demands in developing the new curriculum is, therefore, firstly to define and understand the needs of the manufacturing industry for training and educa-tion on a global basis. The approach presented forms part of the international gem project (Global Education in Manufac-turing), a project in which Slovenia is also involved as a partner, and some experiences obtained in the gem project and research into the needs in the education of the manufacturing strategies are also presented. At the gem workshop organized within the international ims Forum 2004, where we presented our efforts and results in introducing gem curricula into the Slovenian educational practice, it was also stated that (Dolinšek, Starcic, and Kopac 2004): Many new challenges will arise for Slovenia as a full member of the eu from May 2004, and also many opportunities. On the one hand we have some successful economic players who Volume 4 · Number3 · Fall 2006 264 Asbjorn Rolstadas and Slavko Dolinšek can definitely gain from new opportunities, but on the other hand some structural changes still have to be accomplished. Among them, one of the most demanding tasks is related to the higher educational system which has to be harmonized with the eu and global educational systems. The paper discusses the above mentioned problems and puts particular emphasis on the needs of the Slovenian industry, particularly those related to the competencies, as a contrast to the discipline-based education practice mainly offered by Slovenian universities. Links and benefits, such as those provided through the gem project, can be an excellent support for Slovenian educational institutions on their way to becoming part of the global education system. The actions that followed were focused on the implementation of gem curricula in relation to the changes of educational programmes due to the Bologna declaration and the Slovenian law on higher education (Slovenian gem industrial workshop), the last achievements of the gem project, the possibilities of introducing gem results into the Slovenian universities, and also on the gem industrial training model. Competences Needed in Modern Manufacturing In the most general sense, manufacturing is central to the existence or survival of a business, and the manufacturing industry is a key industry. The activity of manufacturing is much more than machining metals or etching wafers: a manufacturing enterprise is an extended social enterprise. Within the manufacturing industry, challenging activities influencing competitiveness are therefore connected to radical new ways of operating (digital business) and to new products (extended products). Digital business involves an advanced use of the information and communication technology in every link of the supply chain to simultaneously reduce costs and lead times and to increase profit. Interesting problems are connected to e-commerce within the manufacturing systems design and production management, and e-commerce within the design and product development. In this context, manufacturing should not be understood in the traditional sense but as a new way of working as a digital business with extended products. Extended products mean taking a lifetime product support perspective and thus including all services to support the product in addition to the manufacturing of the product itself. Managing Global Transitions Global Education in Manufacturing 265 This will require that intelligence is embedded in the product. It includes both tangible and intangible products and services. The main challenge is within the support services for the product. Digital business significantly accelerates the flow of information within the extended enterprise. The creation of extended products through digital business is illustrated in figure 1. In manufacturing companies the required knowledge, skills and engineering competence are provided by mechanical engineers, industrial engineers and electrical, electronic and computer engineers. Their basic education is discipline oriented, focused on mechanics, operation research, cybernetics, electronics, etc. To a limited extent this education reflects the real needs of the industry that faces problems of an integrative nature across the traditional disciplines such as: • working with digital tools for communication; • working in a multicultural environment; • working in interdisciplinary, multi-skill teams; • sharing of tasks on a global and around-the-clock basis; • working in a virtual environment. The existing curricula for Masters in manufacturing are directed more towards manufacturing engineers rather than the manufacturing strategy. They have often tended to emphasize theory over the process and have failed to meet the needs of the manufacturing enterprises operating as future extended and virtual enterprises. A curriculum in Manufacturing Strategy will be designed for a Masters programme. It will be based on traditional engineering bachelor degrees. However, it will deviate from the traditional education by focusing on tomorrow’s industrial situation, requiring enterprise architects and products architects. The future education in Manufacturing Strategy must build the industrial competence by providing a learning atmosphere in the company (a co-operation between academia and industry). The competence areas have been divided into three main areas (for a detailed overview of all topics see Dolinšek and Prodan 2003): • technological competence (Product related topics, Production related topics, Business operation related topics), • humanistic competence (Individual related topics, Company related topics), Volume 4 · Number3 · Fall 2006 266 Asbjorn Rolstadas and Slavko Dolinšek <-